The sale of the Dunbia pork division to Cranswick (CWK) has reignited speculation that a deal for the remaining red meat business is moving closer.

The entirety of the Northern Irish processor has been on the block for more than a year, with a potential joint venture spin-off with the red meat business of 2 Sisters, as revealed by The Grocer in March, failing to complete despite talks getting to an advanced stage.

A senior City source said this week that Jim and Jack Dobson, who founded Dunbia in the 1970s, were in “exclusive talks” with another bidder for the red meat arm.

“The red meat business will still have to be sold and if those talks break down then a piecemeal sale [for the 10 red meat sites] may be the only option left,” the dealmaker added.

Another industry source said a 2 Sisters tie-up remained “compelling”, but ABP, Dawn Meats, Scotbeef and Randall Parker have also all been linked in the past to the Dunbia business, as well as a handful of private-equity funds.

Dunbia group CEO Jim Dobson said the wider business was “unaffected” by the Cranswick deal and would continue as normal. The Cranswick acquisition of Dunbia Ballymena gives the pork supplier a significant presence in Northern Ireland, with almost 8,000 pigs a week processed at the site.

CEO Adam Couch said the potential for additional exports to China was a key driver of the deal. “Unlocking China would be the single best mitigation against inflationary pressures. It would really catapult the business and we urge Defra to work hard to get the necessary approvals.”

Cranswick already sells fifth-quarter pork cuts to the Far East from its English business, but final approval from the Chinese Certification Agency CNCA for Northern Ireland is still pending after it announced in November it intended to approve two plants, including the Ballymena facility.

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